Cigarette packaging: the corporate smokescreen

Noble sentiments about individual liberty are being used to bend democracy to the will of the tobacco industry

'Lynton Crosby personifies the new ­dispensation, in which men and women glide between corporations and ­politics, and appear to act as agents for big ­business within government.' Photograph: David Hartley / Rex Features David Hartley / Rex Features/David Hartley / Rex Features

It's a victory for the hidden persuaders, the astroturfers, sock puppets, purchased scholars and corporate moles. On Friday the government announced that it will not oblige tobacco companies to sell cigarettes in plain packaging. How did it happen? The public was overwhelmingly in favour. The evidence that plain packets will discourage young people from smoking is powerful. But it fell victim to a lobbying campaign that was anything but plainly packaged.

Tobacco companies are not allowed to advertise their products. Nor, as they are so unpopular, can they appeal directly to the public. So they spend their cash on astroturfing (fake grassroots campaigns) and front groups. There is plenty of money to be made by people unscrupulous enough to take it.

Much of the anger about this decision has been focused on Lynton Crosby. Crosby is David Cameron's election co-ordinator. He also runs a lobbying company that works for the cigarette firms Philip Morris and British American Tobacco. He personifies the new dispensation, in which men and women glide between corporations and politics, and appear to act as agents for big business within government. The purpose of today's technocratic politics is to make democracy safe for corporations: to go through the motions of democratic consent while reshaping the nation at their behest.

But even if Crosby is sacked, the infrastructure of hidden persuasion will remain intact. Nor will it be affected by the register of lobbyists that David Cameron will announce on Tuesday, antiquated before it is launched.

Nanny state, health police, red tape, big government: these terms have been devised or popularised by corporate front groups. The companies who fund them are often ones that cause serious harm to human welfare. The front groups campaign not only against specific regulations, but also against the very principle of the democratic restraint of business.

I see the "free market thinktanks" as the most useful of these groups. Their purpose, I believe, is to invest corporate lobbying with authority. Mark Littlewood, the head of one of these thinktanks – the Institute of Economic Affairs (IEA) – has described plain packaging as "the latest ludicrous move in the unending, ceaseless, bullying war against those who choose to produce and consume tobacco". Over the past few days he's been in the media repeatedly, railing against the policy. So do the IEA's obsessions just happen to coincide with those of the cigarette firms? The IEA refuses to say who its sponsors are and how much they pay. But as a result of persistent digging, we now know that British American Tobacco, Philip Morris and Japan Tobacco International have been funding the institute – in BAT's case since 1963. British American Tobacco has admitted that it gave the institute £20,000 last year and that it's "planning to increase our contribution in 2013 and 2014".

Otherwise it's a void. The IEA tells me, "We do not accept any earmarked money for commissioned research work from any company." Really? But whether companies pay for specific publications or whether they continue to fund a body that – by the purest serendipity – publishes books and pamphlets that concur with the desires of its sponsors, surely makes no difference.

The institute has almost unrivalled access to the BBC and other media, where it promotes the corporate agenda without ever being asked to disclose its interests. Because they remain hidden, it retains a credibility its corporate funders lack. Amazingly, since 2011 Mark Littlewood has also been the government's adviser on cutting the regulations that business doesn't like. Corporate conflicts of interest intrude into the heart of this country's political life.

Scruton was also working for the Institute of Economic Affairs, through which he published a major report attacking the World Health Organisation for trying to regulate tobacco. When his secret sponsorship was revealed, the IEA pronounced itself shocked: shocked to find that tobacco funding is going on in here. It claimed that "in the past we have relied on our authors to come forward with any competing interests, but that is going to change ... we are developing a policy to ensure it doesn't happen again." Oh yes? Eleven years later I have yet to find a declaration in any IEA publication that the institute (let alone the author) has been taking money from companies with an interest in its contents.

The IEA is one of several groups that appear to be used as a political battering ram by tobacco companies. On the TobaccoTactics website you can find similarly gruesome details about the financial interests and lobbying activities of, for example, the Adam Smith Institute and the Common Sense Alliance.

Even where tobacco funding is acknowledged, only half the story is told. Forest, a group that admits that "most of our money is donated by UK-based tobacco companies", has spawned a campaign against plain packaging called Hands Off Our Packs. The Department of Health has published some remarkable documents, alleging the blatant rigging of signatures on a petition launched by this campaign. Hands Off Our Packs is run by Angela Harbutt. She lives with Mark Littlewood.

Libertarianism in the hands of these people is a racket. All those noble sentiments about individual liberty, limited government and economic freedom are nothing but a smokescreen, a disguised form of corporate advertising. Whether Mark Littlewood, Lynton Crosby or David Cameron articulate it, it means the same thing: ideological cover for the corporations and the very rich.

Arguing against plain packaging on the Today programme, Mark Field MP, who came across as the transcendental form of an amoral, bumbling Tory twit, recited the usual tobacco company talking points, with their usual disingenuous disclaimers. In doing so, he made a magnificent slip of the tongue. "We don't want to encourage young people to take up advertising ... er, er, to take up tobacco smoking." He got it right the first time.